Fed Governor Warns Rates May Rise If US Inflation Fails to Cool

Federal Reserve Governor Michael Barr has warned that the US central bank may need to raise interest rates if inflation does not show sufficient signs of cooling. This warning comes ahead of the Fed's September 15-16 policy meeting, where policymakers will assess whether further monetary tightening is necessary.

Barr emphasized that inflation remains too high and has been above the Fed's target for over five years. He stated, 'If inflation appears not to be moderating sufficiently, then I think we should act decisively to raise rates.'

The Fed's benchmark overnight interest rate is currently in the 3.50%-3.75% range, with financial markets betting on a quarter-point increase at the September meeting.